Tropicana Corporation Berhad Annual Report 2019

Business Digitalisation Fair and Sustainable Tender Practices As a guideline to be applied throughout the Group, we established a Procurement Policy and Standard Operating Procedure (“ SOP ”) Manual for the Group Procurement and Tropicana Building Materials department respectively. The guidelines continued to be enforced throughout FY2019. Both guidelines included vendor selection criteria, survey and assessment methods to ensure a fair and transparent nomination process. The selection assessment procedure is to provide a system that fulfills the purchasing requirements of the Group and ensures that purchased items and/or services conform to specific requirements outlined by the Group, which includes an Approved Suppliers List. The criteria for evaluation includes material price competitiveness, lead time delivery, compliance to quality standards, material availability, technical support and more. Our survey forms include background reviews and product quality checks to maintain the quality of their deliverables. Upon management agreement, we select our vendors via two types of stringent tender processes based on the project criteria. In the long-term, we believe that our rigorous survey and assessment procedures for suppliers and contractors will further encourage local businesses to improve their own standards in business practices and remain competitive industry players. Embracing The Digital Era In the era of rapid technological advancement, the industry sees more and more business processes being converted from manual labour to automated systems. Year on year, the Group undertakes measures to adopt digital technology across our value chain to continuously improve the efficiency of our business practices and reduce processing time throughout our daily operations. This year, we adopted a new and improved Human Resource Management System (“ HRMS ”) and migrated manual procurement application processes to an automated procedure via the e-Procurement (“ e-PR ”) system. System Implementation August 2019 (except for New IPs in East Malaysia, JMB/JMC/RA) System Implementation April 2019 (Claims, E-payslip & Leave Application) Communication Methods • Briefings • Tutorials • Trainings • Guidelines on the Intranet • Administration and Procurement team to manage any inquiries Communication Methods • Internal Memo • Briefings • Tutorials • Guidelines on the Intranet • HR team to manage any inquiries Benefits of the e-PR • Centralised control and monitoring of e-PR and e-PO • Save user time on re-type PO description • Secure facility for data storage • Proper workflow approval process for all e-PR and e-PO • Reports can be easily generated and saves user time on report preparation • Minimises loss of hardcopy document during manual circulation Benefits of the HRMS • Centralised control and monitoring across all subsidiaries and HQ • Secure facility for data storage • Enhanced workflow approval process • Reports can be easily generated and saves user time on report preparation • Minimises loss of hardcopy document in manual circulation • Improved local support team to address any system technical issues Product sourcing via the Approved Suppliers List (” ASL ”) If the product is not available on the ASL, a new supplier will be engaged via the Vendor Survey Form Shortlisted suppliers are surveyed based on financial stability and quality standards prior to contract award Suppliers are regularly assessed for performance based on the criteria outline in the SOP 1. Selection 2. Evaluation 4. Continuous Assessment 3. Award Prioritising Local Suppliers RESPONSIBLE PROCUREMENT PRACTICES E-Procurement (“e-PR”) Human Resource Management System (“HRMS”) Group Procurement Standard Operating Procedure Sustainability Statement Tropicana Corporation Berhad Annual Report 2019 About Tropicana Our Strategic Performance Our Leadership pg 64